Dental practice buyers guide
It’s time to decide. Are you going to set up a brand new shiny office just the way you want it? Sounds good, until you realize that you’ll have lots of bills to pay, very few patients on your schedule, and little to no knowledge about how to run the business. On the other hand, would you rather acquire a nice, but maybe not quite as shiny, practice that has business infrastructure and cash flow from the existing patients who pay their bills? Thinking in terms of the best business move, this is a no brainer.
When you own a dental practice, you need to be an expert clinician, expert patient manager, and expert business manager. Dental school only provides you the tools for two-thirds of what it takes to run a successful office. Buying an existing practice can give you a perspective on the business operations that a startup can’t. Follow the tips we offer here to ensure a smooth transition into your newly acquired practice and a quicker path to success!
Why Buy a Practice?
Every buyer has their own reasons and motivations for buying a practice, but the most common reasons are:
- Job Security
- Financial Independence
- Personal Growth & Fulfillment
- Pride of Ownership
- Creative Freedom
- Control Your Own Destiny & Run the Practice Your Way
Congratulations on taking the first step to owning your own practice!
Why do buyers use DDR Dental
If you’re considering buying a practice you probably have a lot of questions. Questions like . . .
- How do I get started?
- How do I find a really solid practice?
- How do I get financial information from the seller?
- What is a practice really worth?
- What strategy should I use when making an offer?
- What is the best price?
- Who will write the Purchase and Sale Agreement?
- When should I get a lawyer or accountant involved?
- How do I get the lease I want?
- How can I be sure this is the right practice for me?
We are an end-to-end dental practice transition firm delivering results for our clients for over 30 years. DDR Dental is the most experienced dental practice transition firm in Texas. Let us share our experience with dental practice associateships, dental practice partnerships, dental practice start-ups, dental practice appraisals, and dental practice sales.
How long does it take to buy a dental practice?
It takes as long as the buyer and seller allow it to take.
There are many tasks that you, or a representative like Business Advisors, must perform in order to make sure that your transaction is legal and your resources are secure. These include:
- Care Quality Commission (CQC)
- Property and Leases
Dental Practice Valuations
You must get a valuation from an established provider to receive an accurate purchase price of the practice you are purchasing.
Financial Options: (Dental Practice Funding)
When a lender assesses your loan application they will be looking at a variety of factors. These include:
- Your earning history as an Associate Dentist
- Your financial track record and how you have managed your personal finances e.g. do you have high credit card balances is always a bad time to apply for a loan.
- Your current living situation i.e. do you own your own house or rent?
Why you’re buying their dental practice
Many dentists who are selling their practice factor in a sense of legacy to the transaction, and may be more willing to negotiate with someone who can show respect for their accomplishments – while also being conscious of their own ambitions.
Due Diligence & Inspection
You meet with the seller to examine the financial records and conduct other reviews that are part of the due diligence process. This is a critical step where you, the buyer, examine the practice to ensure that it is what the seller claimed it to be and it meets the conditions of your offer.
Dental Practice Marketing
Make sure to ask the seller about the marketing relationships they’ve forged during their time at the practice. Ask them what ways they’ve advertised in the past, and if there were any open accounts with dental marketing specialists that you could utilize.